Curve Finance’s founder is liquidated as the price of the CRV token drops precipitously

  • In the last day, the price of the Curve DAO token dropped by around 25%.
  • Since the founder of Curve utilized the token as collateral, his on-chain loan positions were liquidated.

Curve Finance founder Michael Egorov had his investments in on-chain loans canceled earlier on Thursday.

The price of Curve DAO, the token associated with the decentralized exchange, has dropped by more than 25% in the last day and is currently trading at $0.27.

According to Arkham Intelligence, Egorov’s loan positions in other protocols were liquidated for a total of $140 million in CRV.

Using CRV tokens as security, Egorov had borrowed a variety of stablecoins from DeFi platforms, including Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend.

Egorov had begun to be liquidated on Inverse earlier today, but precautions were taken to reduce additional hazards. As of this writing, Egorov’s position on Inverse has a health rate of 1.07; liquidation usually occurs when the number approaches one. 

Based on on-chain statistics, Egorov has started paying back the stablecoin DOLA that was borrowed.

DeBank reports that more liquidations totaling more than $5 million occurred on Thursday morning about three in the morning eastern time on Egorov’s loan positions for the stablecoins DAI and USDT on UwU Lend. His UwU health rating increased to 1.08 as a result.

Arkham had earlier predicted on Wednesday that Egorov’s $140 million worth of CRV positions were very close to liquidation. The inventor of Curve is also paying 120% in annualized rates to keep his positions on LlamaLend.

The blockchain intelligence company estimated that Egorov’s positions would be liquidated upon a 10% decline in CRV’s value.

August 2023: To mitigate any liquidation risks related to his outstanding debt across multiple DeFi platforms, such as Aave, Egorov sold 106 million CRV for $46 million in agreements.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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